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Toward a model of issue-selling by subsidiary managers in multinational organizations

Author

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  • Yan Ling

    (School of Management, George Mason University, Fairfax, Virginia, USA)

  • Steven W Floyd

    (School of Business, University of Connecticut, Storrs, Connecticut, USA)

  • David C Baldridge

    (Oregon State University, Corvallis, Oregon, USA)

Abstract

In multinational organizations, local market responsiveness is critical to the development of effective strategies. This responsiveness is expected to occur in part as the result of upward influence from local subsidiary managers, who represent the local culture and shift relevant priorities accordingly. Issue-selling – defined as directing top management's attention to particular issues and helping them understand such issues – is one important way in which subsidiary managers pursue upward influence. The purpose of this paper is to help multinational organizations better facilitate and exploit potentially valuable input from local subsidiary managers. To do so, we propose an acculturated view of issue-selling. More specifically, we argue that subsidiary managers socialized by different national cultures vary: (1) in the extent to which their intention to sell issues is influenced by various contextual cues; and (2) in their choice of selling strategies. These theoretical differences suggest that local subsidiary managers from different cultures will differ in the way they approach issue-selling and, in turn, in the way they influence the strategy-making process. The discussion traces the implications of this line of reasoning for future research on the influence of local subsidiary managers and, more generally, for research on the cultural embeddedness of the strategy process. Journal of International Business Studies (2005) 36, 637–654. doi:10.1057/palgrave.jibs.8400166

Suggested Citation

  • Yan Ling & Steven W Floyd & David C Baldridge, 2005. "Toward a model of issue-selling by subsidiary managers in multinational organizations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(6), pages 637-654, November.
  • Handle: RePEc:pal:jintbs:v:36:y:2005:i:6:p:637-654
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    Citations

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    Cited by:

    1. Wang, Na & Hua, Ying & Wu, Guoying & Zhao, Chunxia & Wang, Yonggui, 2019. "Reverse transfer of innovation and subsidiary power: A moderated mediation model," Journal of Business Research, Elsevier, vol. 103(C), pages 328-337.
    2. Santos-Álvarez, Valle & García-Merino, Teresa, 2010. "The role of the entrepreneur in identifying international expansion as a strategic opportunity," International Journal of Information Management, Elsevier, vol. 30(6), pages 512-520.
    3. Ambos, Tina C. & Tippmann, Esther & Nell, Phillip C., 2023. "Realizing subsidiary initiatives: A network mobilization view," Journal of International Management, Elsevier, vol. 29(6).
    4. Gorgijevski, Alexander N. & Andrews, Daniel S., 2022. "Getting the seal of approval: Pathways to subsidiary initiative acceptance," Journal of International Management, Elsevier, vol. 28(2).
    5. Ling, Yan & Baldridge, David & Craig, Justin B., 2012. "The impact of family structure on issue selling by successor generation members in family firms," Journal of Family Business Strategy, Elsevier, vol. 3(4), pages 220-227.
    6. Ambos, Tina C. & Hughes, Mathew (Mat) & Niemand, Thomas & Kraus, Sascha, 2023. "Subsidiary managers' initiative pursuit: A behavioral agency model," Journal of International Management, Elsevier, vol. 29(3).
    7. Keupp, Marcus M. & Gassmann, Oliver, 2009. "International innovation and strategic initiatives: A research agenda," Research in International Business and Finance, Elsevier, vol. 23(2), pages 193-205, June.
    8. Conroy, Kieran M. & Collings, David G., 2016. "The legitimacy of subsidiary issue selling: Balancing positive & negative attention from corporate headquarters," Journal of World Business, Elsevier, vol. 51(4), pages 612-627.
    9. Sarabi, Almasa, 2020. "Shades of silence: Why subsidiary managers remain silent vis-à-vis their headquarters," Journal of World Business, Elsevier, vol. 55(6).
    10. Gorgijevski, Alexander & Holmström Lind, Christine & Lagerström, Katarina, 2019. "Does proactivity matter? the importance of initiative selling tactics for headquarters acceptance of subsidiary initiatives," Journal of International Management, Elsevier, vol. 25(4).
    11. Michailova, Snejina & Fee, Anthony & DeNisi, Angelo, 2023. "Research on host-country nationals in multinational enterprises: The last five decades and ways forward," Journal of World Business, Elsevier, vol. 58(1).
    12. Yang, Man, 2018. "International entrepreneurial marketing strategies of MNCs: Bricolage as practiced by marketing managers," International Business Review, Elsevier, vol. 27(5), pages 1045-1056.
    13. Achcaoucaou, Fariza & Miravitlles, Paloma & León-Darder, Fidel, 2017. "Do we really know the predictors of competence-creating R&D subsidiaries? Uncovering the mediation of dual network embeddedness," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 181-195.

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